How to Cash a Series EE Bond
For those that have EE Savings Bonds, it's a double-edged sword. The security of receiving a set interest rate is great during times the stock market fluctuates, but when times are good, the interest rate seems low. If you find that you're strapped for money or simply want to cash your bond because it ceased paying interest, then you have several options.
Other People Are Reading
Instructions
-
-
1
Make sure that the EE Savings Bond is at least 1 year old. If you cash it in the first 5 years, you'll end up paying a penalty that is the equivalent of 3 months of interest. Check the interest rate you're getting. The EE bonds are 90 percent of the average yield on 5-year Treasury securities for the previous 6 months. They can be an excellent investment in a time of declining interest rates.
-
2
Call your local bank. Most financial institutions cash in EE savings bonds. Call ahead and schedule an appointment. This ensures an employee has time to deal with you without any rush. It also gives you an opportunity to make sure you have all the proper identification. Most of the time, an account at the bank and your driver's license is enough.
-
-
3
Use the services of the Federal Reserve Bank Branch in your area. Check the link below to find the address. You can't walk into the branches but they do offer service by mail or by phone.
-
4
Find any necessary forms on Treasurydirect.com if you're redeeming the bonds by mail (see Resources). If you live near the Treasury Retail Site, known as the Federal Reserve Bank Branch, that's another place for redemption. Don't forget to call ahead for an appointment. Lost bonds, estate administration forms and guardianship forms are just a few that might be necessary to cash out your EE Savings Bond.
-
5
Remember, you can only redeem $1,000 at a time based on just documented identification only. If you need to redeem more in bonds you'll need to sign the back of the bonds in front of a certifying bank officer, include your Social Security number and then mail the bonds to the Treasury Retail Site in your area. Find it by using the link in the resource area.
-
6
Convert your paper savings bonds to the TreasuryDirect program SmartExchange. If you do, you simply open an account and follow the link under Manage Direct titled "Manage My Conversions." Once you're there, click on "How to Convert My Paper Bonds." Once you've converted, it gives you access 24/7 and allows you to redeem your bonds at any time once you meet the minimum time requirements.
-
7
Check the value of your bonds before you cash them out with the Savings Bond calculator at TreasuryDirect.com (see Resources below).
-
1
Resources
- Photo Credit Stock.xchng: Dani Simmonds (penywise)
